Glendale Arizona Raises City Sales Tax
- Jun 21, 2012 | Susan McLain
Reductions in state-shared revenue and the city sales tax has caused Glendale, Arizona to seek to find ways to deal with a $35 million deficit. That answer is to raise the sales tax.
Glendale’s Chief Financial Officer Diane Goke “…said the sales tax increase would provide the city with much needed revenue in the first year alone.” That revenue is needed to help fund the “…city’s general fund account, which is used to pay for many of the city’s operations.”
The council approved a 0.7 percent increase, which raises the existing city sales tax from 2.2 percent to 2.9 percent. Goke indicated, “The increase in the tax rate will provide an estimated $23 million in revenue for fiscal year 2013.”
The decision was not supported by local businesses. Jackson Moll, a representative from the Homebuilders Association of Central Arizona said, “Given today’s economic environment, an increase in the cost of doing business will make Glendale less competitive with other communities for business and investment. An increase in the sales tax will be particularly damaging to the viability of home building.”
Business leaders such as Sanderson Ford President Dave Kimmerle have announced they would move to get a referendum on the November election ballot for Glendale voters.
The sales tax increase goes into effect August 1, 2012.